The U.S. Treasury Department proposed new rules on Monday for stablecoin issuers. These rules set compliance requirements under the GENIUS Act. The proposal aims to clarify who can issue payment stablecoins in the U.S. market. It also extends liability to intermediaries involved in stablecoin transactions.
Key Details
The proposed rules would require platforms to perform "reasonable due diligence" on foreign stablecoin issuers if their products are marketed to U.S. customers. Treasury Secretary Scott Bessent said the administration wants to provide regulatory certainty to encourage innovation. This will help maintain the U.S. dollar's status as the world's reserve currency. The rules could also apply to overseas activities involving U.S. residents. This means exchanges could be held responsible for unlawful stablecoin issuance.
Background
This is the first major step in implementing the GENIUS Act, which Congress passed last year. The Treasury's proposal comes after the initial deadline for regulatory implementation expired last month. Bessent stressed the need for clear rules to support the stablecoin market's growth while ensuring compliance with existing financial regulations. The proposal also seeks feedback on offshore safe harbors and emergency mechanisms for suspending restrictions in unusual situations.
Related coverage: EU’s Stablecoin Regulation Faces Key Decision on Fungibility, MSCI’s New Proposal Could Exclude Bitcoin Holding Firms.
The proposed regulations could impact the cryptocurrency sector, especially stablecoin issuers and exchanges. Increased compliance requirements may lead to higher operational costs for these companies. This could affect their profitability and market dynamics. Investors will be watching for responses from industry stakeholders and any changes to the proposal based on public feedback.
Based on reporting by: americanbanker.com, coindesk.com